Citis stance on new fha guidelines for seller contributions

Hi

I am working on a short-sale. It is an FHA mortgage by Citi.

FHA had guideline changes in October, 2013. 

1) Citi is asking for contribution based on a UTMA account by Borrower with her minor daughter. A UTMA account is basically an asset of child. Can bank ask for contribution based on it?

2) More importantly, Borrower had filed chapter 7 and this property was discharged from Bankruptcy. From waht I understand, she is forever barred from being pursued for a deficiency judgement on the property. Can the bank even ask for contribution based on FHA guidelines?

Is anyone familiar with new fha guidelines and their impact on above mentioned situations?

Thank you, Regards, Avani

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Replies to This Discussion

Permalink Reply by Robin Lemmons on December 2, 2013 at 5:59am

My understanding is they can request 20% of liquid assets. I believe those would be of the mortgagor only.

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